Western cyclone., 1887-07-01
IT OWES SIX MILLIONS.
OF THE FIDELITY
BANK REACH THAT SUM.
Where the Money Went-Lead Pencil
Memoranda for a NIilliOn-The
COmptrOller's Orders.

CINCINNATI, Ohio, June GAS the exam
ination of the Fidelity National bank pro-
ceeds the cavernous deficit increases 1t is
now the common talk on the streets that the
liabilities Of the bank will reach the stu
pendous sum of $6,00J, coo, while the assets
dwindle IN proportion. It seems q
foregone conclusion that depositors
viii get next thing to nothing. This
Is the general talk, but, of course, it is unofl-
cial, and can not be verified until the
bank-examiner completes his work It is
stated that the memorandum which is the
substitute for collaterals shows that Wiltshire
used 81, 100, 900 of the banks money, and that
collaterals for other loans were hypothe-
Gated in New York and elsewhere. 1t is the
belief of some that Wiltshire acted as the
agent of Harper in conducting the wheat
deal, and was not really borrower. There
is still talk of more arrests.
Comptroller Trenholm has telegraphed
from Washington general instructions to
Bank-Examiner Powell, who is il charge OF
the bank. He is directed to receive all paw
ments rendered him and push collections Of
overdrafts and and maturing paper, but to
pay out nothing that was in the bank at the
time Of failure. Paper maturing and
not paid must be protested, and no checks
or offsets are to be allowed. In fact, nothing
Is to be done that can await the appointment
of q receiver. Remittances to the bank bv
mail, and collections made by the examiner
for account Of parties not indebted to the
bank and unmatured paper held for colec-
tion and not credited to owners may be re-
turned or disposed Of as owners direct.
Among other statements made about the
bank IS one that Bank Examiner Powell on
Monday afternoon demanded statement
from the bank, and received one showing q
balance on hand or 81, 600, 900 OF cash. Then
calling for view of this money, he was
amazed to be shown q lead-pencil memo
randa, reading: "Wiltshire, Eckert s. Co..
100000; J. w. Wiltshire, $4S,O0O," and
50 on through a long list. There
was no collateral, no security what
ever. Mr.. Baldwin and Mr. Hopkins
were unable to make any explanation and
Mr.. Harper could offer none. Even after
this, it is said, the offer to permit the bank
to continue was made if these three men
were expelled and new capital brought in.
But when the inquiry was made as to how
much would be required, the answer was
$1,OOO,o0O at least That staggered the di
rectOrs and although they still hoped to
form a reorganization it is most probable
that the fear that a further
examinanation would reveal q
further deficit deferred them. The
fact is that Harper concealed from the di
rectOrs his connection with the wheat deal.
He is said to have admitted yesterday that
he did not 60 into the wheat deaf himself.
but that he honored an overdraft from o
member Of the clique. This draft, Harper
says, was for $4,000 and was drawn by
Wiltshire. Harper charges the whole break
to the action of the Chicago Board of Trade
in making all wheat regular.
Mr.. Eugene Powell, the bank examiner, i,
credited with saying that the condition OF
the bank is woeful He said it was singular
how Harper had deceived everybody about
the matter. In this connection it may be
recalled that when the wheat panic occurred
in Chicago. and rumorS were out of a run
on the Fidelity bank, Mr.. Harper
stated repeatedly to parties asking for in.
formation that he did not know who
was in the wheat deal, and he went so far as
to say that he did not believe that it was
managed at all in Cincinnati, but was con.
Quoted from California and Cleveland.
More attachments upon Harper's property
have been made, AMI everything he has is
now tied up.
Harper, Baldwin, and Hopkins. vice presi-
dent, cashier, and assistant cashier respec-
tive of the Fidelity National bank. have been
rearreSted on u new charge. The charge
upon which they were arrested this time is
that they conspired to defraud in issuing
large drafts TO the amount of 5000, 900 for in.
veStment in the Chicago wheat deal, and in
making false returns TO the United States
Comptroller of Currency. The trio appeared
before United States Commissioner HOOPER
waived examination. and were bound over
to the grand jury. Harper's bail under this
arrest was fixed at $1,000 and that OF Bald.
win and Hopkins at 5000 each II. B.
Morehead is the only bondsman thus far
offered, AM he only went bail for Harper.
1t looks much as if the prisoners would have
TO be jailed. Joseph Josephs, creditor of
E. l.. Harper to the extent OF $4,000, has
repevined Switt's Iron and Steel Works,
Newport, which were yesterday assigned 10y
E. l. Harper.